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That breached the 30 per cent barrier that triggers a mandatory buyout offer according to UK rules.

The panel took King to court after he flouted their demand that he offers 20p a share to purchase the remaining stake. Many of these shares are owned by supporters.

Lord Davidson of Glen Clova QC, representing King, said a judge’s order to force his client to set out a share payout was “pointless” and “a waste of resources”, adding: “He does not happen to have the £10million to £12million needed.”

Lord Davidson said King would be compelled to send out “curious” letters to shareholders telling them he’d “been ordered to make an offer but doesn’t have the money to pay them”.

Dave King made his cash in South Africa although his wine estate was sold to pay a tax bill

The South Africa-based businessman could then face a contempt charge and a criminal conviction for violating any court-imposed directive, he added.

Discussing his client’s lack of direct control over family money, Lord Davidson said: “Mr King is not the trust. The trust is another person.

“The beneficiary can’t order the trust to do whatever he wants. They are not responsive to the whims of Mr King.”

The hearing was told King instructed the buying of 14.75 per cent of Rangers shares on December 31, 2014, through New Oasis Asset Management Ltd (Noal), based in the British Virgin Islands. The purchase was made two days later.

Together with shares acquired by the Three Bears, it gave them a combined 34.05 per cent of Rangers’ share capital.

The panel said Noal are wholly owned by Sovereign Trustee International Limited, the trustees of the Glencoe Investment Trust, which was established to benefit King, his wife and children.

The money to pay for Rangers shares came from Glencoe and they were held by Noal, the judge was told.

Rangers directors Dave King, Paul Murray and John Gilligan celebrate after winning control of the Ibrox boardroom in March 2013 (Image: Daily Record)

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The court heard King denied being in contact with George Letham – one of the Three Bears along with George Taylor and Douglas Park – about buying up shares.

But the panel unearthed a Hogmanay 2014 email sent to King by Letham warning him about the threat of having to make a “mandatory offer” if they acquired more then 30 per cent.

Commenting on King’s denial, Advocate James McNeill QC, acting for the Takeover Panel, said: “This statement is very difficult to square with a genuine effort to recall what happened.”

Judge Lord Bannatyne asked whether it was “absolutely reasonable” that King should have to make the share offer as he’d been warned about the buyout threshold by Letham.

Lord Davidson replied the email didn’t demonstrate King had an “understanding” of the rules, adding: “Not everyone necessarily has a grip over the takeover code.”

Rangers investor George Letham is described as one of the 'Three Bears' (Image: SNS Group)

Some entrepreneurs drove ahead in deals, he said, and “let the lawyers sort out the details”.

The court heard Letham denied to the panel during a phone interview that he’d had any communication with King about the share buys.

When shown his message to King, Letham allegedly told investigators that it was “the one email that really surprised me”.

King has denied acting in consort with the Three Bears.

This email was evidence of consort, McNeill said.

The hearing was told King denied ever owning shares in Rangers.

McNeill said King was being “somewhat disingenuous” when he told them: “I am not and never have been a shareholder in Rangers.”

King maintains the stake in Rangers is held by Noal.

The court heard he told the panel before their official hearing on the matter that he’d “never been a director of Noal, had no legal capacity to represent them and in the circumstances was in no position to advance their interests”.

But the panel, who launched their investigation in early 2015, said they found evidence King was able to control Noal voting rights.

Rangers fan George Taylor also bought into the club (Image: Getty Images)

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McNeill said the Takeover Panel acknowledged the share buys by King and the Three Bears took place during “chaotic circumstances” for the club, and “people were acting in what they thought was the best interests for Rangers ”.

He added it was “very rare” for the panel to take such legal action.

But shareholders who have “otherwise been disenfranchised” should be “protected by giving them a chance to respond to an offer”.